Chapter 10 End of Chapter Questions

. Which of the following is not a reason why the common law remains important for a third party seeking to acquire rights under a contract?

The Contracts (Rights of Third Parties) Act does not affect rights or remedies otherwise available under the common law.

The Contracts (Rights of Third Parties) Act does not apply to some classes of contract.

Parties can exclude the operation of the Contracts (Rights of Third Parties) Act.

All of the options are valid reasons why the common law remains important.

. Which of the following statements is true?

The Contracts (Rights of Third Parties) Act affects the common law rule that a contract cannot usually impose duties on a person who is not a party to it.

The Contracts (Rights of Third Parties) Act affects the common law rule that a person who is not a party to a contract cannot usually acquire rights under it.

. In 1994, Albert and Barry enter into a contract whereby they each agree to pay their nephew Charlie a monthly allowance of £500 for 3 years. It is now 1996. Barry has paid £500 to Charlie each month, but Albert has not. Which of the following statements is true?

Under the Contracts (Rights of Third Parties) Act, Charlie could sue Albert for the outstanding instalments.

At common law, Charlie could sue Albert for the outstanding instalments.

At common law, Charlie cannot sue Albert for the outstanding instalments.

All of the statements are incorrect.

. Fraser takes Rebecca on a date to an expensive restaurant. Fraser pays the bill. The next morning, Rebecca messages Fraser to tell him that she has contracted food poisoning from their meal. Fraser does not reply as he thinks the date went terribly. Rebecca tries to sue the restaurant. Can she succeed at common law?

Yes

No

. A, a shipper, contracts with B, a carrier, for the delivery of A's goods to Newcastle. B employs C, a firm of stevedores, to unload the ship. In the contract between A and B there is an express provision that liability for both B and C is limited to £100. At the port, an employee of C gets on board first and smashes a £400 vase before unloading commences. What is the level of C's liability to A?

£0

£100

£400

None of the options given is correct

. B, a business advisor, contracts with A that B will work for A's business until it becomes profitable. In return, B asks that A pays the university fees of B's daughter, C. A's business becomes profitable, and B subsequently dies. A refuses to pay C's fees. Can C compel A to pay her university fees at common law?

Yes

No

. In which of the following situations would B not be able to recover for damage sustained by C?

B and C each has an insurable interest in goods and B takes out a policy with A covering the insurable interests of both B and C. The goods are damaged.

A enters into a contract to transport B's goods. A realises that B is about to sell the goods on to C. A damages the goods whilst transporting them, and after ownership has passed to C.

A contracts with B to erect buildings on C's land. The work done is defective, and C has no direct claim against A.

None of the options given is correct.

. If A contracts with B not to sue C, but then does so, which of the following is true?

B may be able tp get an injunction to prevent A's action.

C may be able to get an injunction to prevent A's action.

Both of the options given are correct

None of the options given are correct.

. A contracts with B to provide a luxury sports car for C. This is a surprise for C, but he has found out about it and not told A or B. Excited to start using the car as soon as he received it, C spends £400 on personalised car seats for that particular model of car. A later finds out that there is a fault with the model and offers B an alternative, which B accepts. C is distraught when he receives the alternative and cannot use his car seats. Does C have any cause of action in contract against A?

Yes

No

. A and B enter into a contract for the building of a home for C. B is to pay A £1,000,000 for the building of the property. A later discovers that the land for the property to be built on is marsh land and is unusable, contrary to the representation made by B prior to entering into the contract. A fails to build the property and C attempts to sue A. What provision of the 1999 Act may A be able to rely on as a defence to any claim against C?

Section 3(2)

Section 3(3)

Section 3(4)

A has no defence against C as C was not a party to the contract.

. A agrees to buy a car from B. C, who has the same model car as B, then approaches A with a lower asking price for the car. A replies that he has already agreed to buy B's car, and that he only needs one. C offers to give B his tickets to next year's Glastonbury festival, if he agrees to breach his contract with B and buys his car from C. Can B sue C?

Yes

No

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